[Geojit Comtrade] Daily report on Natural Rubber: August 5, 2014

MARKET COMMENTARY

A mixed trend was witnessed in the Indian natural rubber market on Monday. While RSS4 ruled firm near Rs.139 a kg, NMCE rubber futures were seen declining after three successive days of gain. Unfavourable weather in the major natural rubber growing area in Kerala lend firm support though jaded demand from the tyre sector along with higher imports and weakness in the overseas market weighed on overall sentiments, restricting gains.
Natural rubber is seen stretching losses on Tuesday in the major overseas market. TOCOM rubber futures inched lower for the third day today as concerns over demand from the top consumer China continued to ponder upon.

MARKET NEWS

Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose by 196 tonnes to 15570 tonnes last week.
NR inventories in Qingdao, China’s main rubber trading hub, drop to 214,300 mt from 239,000 mt as of July 31, according to Qingdao International Rubber Exchange Market.
Rubber exports from Thailand rose 9.8 per cent to 1.7 million tonnes during January-June 2014.
Crude rubber inventories at Japanese ports stood at 19,188 tonnes as of July 20, down 2.1 percent from 10 days earlier, according to Rubber Trade Association of Japan.
Indonesia’s natural rubber production is seen at 3.2 million tonnes in 2014 compared to 3.1 million tonnes produced last year according to the country’s Agricultural Ministry.
Natural rubber imports during the first six months of 2014 rose 58 per cent to 1.61 lakh tonnes.
Kerala State Finance Minister says Rs.10 crore have been enmarked to procure natural rubber and likely to pay Rs.5 per kg more than the daily domestic market price of rubber.
The Association of Natural Rubber Producing Countries’ 7th Annual Rubber Conference to be held in Kuala Lumpur, Malaysia on 13th October 2014.

TECHNICAL VIEW

RUBBER Sep NMCE

Rubber price hike rejoices cultivators; irks manufactures

Following the retreat in the previous session, looking ahead, a direct fall below 13700 with considerable volume may have the potential to revisit the recent lows or more. However, 13700 ranges, if held downside could call for a bounce back though it is now mandatory to clear 14100 upside for buying to re-emerge.

TURNAROUND